Pound Struggles Amid UK Borrowing Exceeds Forecasts

The British pound has been struggling against the US dollar, reaching a six-week low around 1.3350 as the UK government's borrowing exceeds forecasts.

UK public sector net borrowing was £18.3 billion in August, higher than expected and the second-highest August on record after 2020.

The deficit has climbed to £77.3 billion in the first five months of the fiscal year, £8.1 billion more than the Office for Budget Responsibility forecast.

Chancellor John Healey is facing challenges as he prepares his first Budget on October 28, and higher borrowing costs are reducing the government's fiscal headroom.